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Trial offer Free or low-cost trial with rebill (continuity)

In plain words

A trial offer lets a customer try a product or service free or cheaply for a short time, after which it turns into a paid subscription unless they cancel. The advertiser earns on the later payments, the rebills, which is why it can pay affiliates well for each trial that starts.

Definition

A trial offer, also called a continuity or negative-option offer, enrols the customer in recurring billing after an introductory period: a free or discounted trial of software or streaming, or a low-priced sample of a physical product followed by regular shipments. Each later charge is a rebill. Affiliates are usually paid on the trial start, either a CPA on the card submission or a share of the rebill revenue.

The economics depend on how many trial users become paying customers and for how long. An advertiser paying 40 USD per trial on a 30 USD monthly product needs enough customers to stay several months, net of refunds and chargebacks, to recover the payout. That is why trial offers often carry KPIs on cancellation or refund rates, and why traffic from honest pre-sell is worth more than raw volume.

The legal frame is strict. In the US, the Restore Online Shoppers’ Confidence Act requires clear disclosure of the material terms before billing, express informed consent and a simple way to cancel. The FTC’s broader click-to-cancel rule was vacated by the Eighth Circuit in July 2025 on procedural grounds, but ROSCA and state automatic-renewal laws still apply. Card networks add their own requirements: Visa since 2020 requires express consent at enrolment, a reminder before the paid period begins and easy online cancellation, and Mastercard since 2019 requires the cardholder’s approval at the end of a trial for physical products.

Affiliates promoting trials share the risk. Ads and prelanders that hide the recurring charge, call a paid program free or invent urgency drive chargebacks, clawed-back commissions and, in the worst cases, enforcement in which the whole marketing chain is examined. A compliant trial funnel states the price after the trial, the billing date and how to cancel, and targets people who actually want the product.

In practice

Worked example — illustrative numbers

Why an advertiser can pay 40 USD for a trial start

A 30 USD monthly subscription follows a free first month. Out of 100 trial starts from one affiliate:

PeriodCustomers still subscribedRebill revenue
Trial month1000
Month 1551,650 USD
Month 2381,140 USD
Month 328840 USD
Months 4–620 on average1,800 USD
Six-month total5,430 USD

Paying 4,000 USD for these 100 trials leaves room only if retention holds, before product, refund and chargeback costs. That is why the advertiser watches cancellation and chargeback rates by affiliate and cuts sources whose customers leave in the first month. Numbers are illustrative.

Common mistakes

  • Hiding or playing down the recurring charge in ads or prelanders.
  • Promoting trials to audiences who only want the free part, which shows up later as refunds and chargebacks.
  • Ignoring the cancellation and refund KPIs attached to the offer.
  • Assuming the vacated FTC rule means trial marketing is unregulated; ROSCA, state laws and card network rules still apply.
  • Counting trial payouts as final before the hold period and the chargeback window have passed.

Go deeper

FAQ

What is a trial offer in affiliate marketing?

An offer where the customer starts with a free or cheap trial that turns into a paid subscription unless cancelled. Affiliates are usually paid per trial start.

What is a rebill?

Each recurring charge after the trial period ends, such as the monthly subscription payment or a repeat shipment.

Is the FTC click-to-cancel rule still in force?

No. The Eighth Circuit vacated it in July 2025, but ROSCA, state automatic-renewal laws and card network trial rules still apply.

Why are trial offers linked to chargebacks?

When customers do not realise they agreed to recurring billing, they dispute the charges. Clear disclosure and honest pre-sell keep chargebacks down.

Sources

  1. Restore Online Shoppers’ Confidence Act — Federal Trade Commission (ftc.gov)
  2. Click to Cancel Just Got Cancelled: Eighth Circuit Vacates Entirety of FTC’s Negative Option Rule — Cooley (cooley.com, 2025)
  3. Trial Subscription Updates — Visa (usa.visa.com, 2020)
  4. Mastercard announces new free trial rules for merchants — Davis+Gilbert (dglaw.com, 2019)

References are listed as plain text on purpose; look them up by title and publisher. Updated: 2026-10-09.

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